O-LevelAccountingPreparation of financial statements7707/12 · Oct/Nov 2022 · Q191 Mark
During the year, Sam paid advertising expenses, some of which related to the following financial year. Sam made an adjustment for this when preparing his financial statements for the current year. What was the effect on Sam's financial statements of making this adjustment? decrease profit for the year increase profit for the year increase current assets increase current liabilities A ✓ B ✓ ✓ C ✓ D ✓
Aincrease profit for the year
Bincrease profit for the year, increase current assets
Cdecrease profit for the year
Dincrease current liabilities
✓ Correct answer
B: increase profit for the year, increase current assets
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